Stefan MolyneuxVerified account

actually, the government AND lenders set up that typhoon, by creating entire tranches of TOXIC LOANS... loans which both knew were never going to be paid in return.

I was a lender back then. If we didn’t lend to ALL applicants we were scrutinized for disparate treatment of minorities

It's also important to note the rampant speculation thanks to artificially low interest rates. College students with no assets or income were flipping houses. The mania lasted around 2 years and then it call came crashing down. Very similar to today.

These set of tweets may require a thought bites segment .

The 1992 housing act forced banks to accept unemployment and welfare payments as downpayment for home loans to prove their approval criteria wasn't discriminatory. Banks marketed loans directly to people who couldn't afford them. Woke government intervention created the crisis.

If the gov required all teenagers be given credit cards, you would have a instant debt crash within mere years. When you require banks to lend to those that are likely not to afford it, it leads to a housing crash....which it did.